Caesars: Is Worst Over?

Shares have gotten crushed as private-equity firms spar with Caesars bondholders. However, going short could now backfire.

The battle is heating up between Apollo Global Management and TPG Capital, the big private-equity firms that control Caesars Entertainment (ticker: CZR), and a group of Caesars bondholders that includes some well-known hedge funds, including Appaloosa Management and Oaktree Capital.

Appaloosa is run by David Tepper, who made his name in the distressed-debt and high-yield markets. Oaktree is headed by Howard Marks, another...